MANILA, Philippines - Chemical Industries of the Philippines Inc. (Chemphil) is unloading its majority stake in LMG Chemicals Corp. to a business group, one month after pushing back the share sale.
“The majority of the directors present voted to approve the sale of Chemphil’s entire shareholdings in LMG consisting of 127.58 million shares to the investor represented by Asian Alliance Investment Corp. [and] businessman Norman Ng,†the firm said in a disclosure to the stock exchange.
The board of directors allowed the sale of the 65-percent stake in LMG “with the condition that there should be no tax consequences on the part of the company,†Chemphil said.
Chemphil last month postponed the sale of its listed subsidiary to evaluate the proposal of Asian Alliance.
In 2010, Chemphil called off the P354-million sale of its majority stake in subsidiary LMG to Sonato Inc. due to a court case.
In 1995, Ferro Chemicals filed a case against Chemphil at the Makati Regional Trial Court. Ferro Chemicals claimed that Chemphil engaged in the fraudulent act of representing that the Chemphil shares were free from liabilities. The case is now in the Supreme Court following several appeals by both parties.
In 2007, LMG underwent corporate restructuring when it transferred its assets and liabilities to two wholly-owned subsidiaries, Chemphil Manufacturing Corp. and LMG Landco.
LMG subsidiary KPC produces aluminum sulphate for Manila Water Co. and Maynilad Water Services Inc. while Chemphil Manufacturing makes sulfuric acid, oleum, detergent sulfur, and other industrial chemicals.